AARP Saves Social Security by 201%

Common purpose, poles apart

In the print version, Julie details eight proposals which would total 201% savings of social security. So, theoretically, once those savings are realized, we could double payout? Well perhaps not, but there is a sample of ideas which would fix the issue without burdening us with any more debt.

1) Wage cap increase: $140,000 as the wage cap would save us 43%. As incomes rise, the cap should, too. In the end, they could benefit from a little extra dough after they retire.

2) Bumping the retirement age to 70 by 2083. I'll be 112. I don't think I'll care if those young whippersnappers can't fully retire until they're 70. Especially if life expectancy rises as fast this century as it has during the last one. That's now a total of 81% of the shortfall.

3) Upping the work requirement from 35 to 38 years would bring the total saved to 97% of Bush's 'crisis.'

Personally, I think that 97% is pretty good, but we could go one step further. To diversify the portfolio by adding a broad index fund could give us better returns in a relatively safe fund estimated to be able to cover 15% of the shortfall.

Then, anyone dumb enough to take a reduced payout fifty years from now should be free to do it on their own, and then not expect us to feel bad for them.